Maryland, Seven Other States Split AEP Settlement
Funds Funds to be Used for Clean Air and Green Energy Projects

BALTIMORE, MD (April
8, 2008) – Attorney General Douglas
F. Gansler announced today that Maryland and seven other states
will divide $24 million to be used for energy efficiency and air
pollution reduction projects as a result of a federal Clean Air
Act settlement with American Electric Power (AEP), the nation’s
largest power company. Each state will establish a process for
determining how their share of the project money will be distributed.
Potential projects include supporting the construction of “green” buildings,
installing solar and other renewable energy systems, purchasing
pollution control technologies, and investing in energy efficiency
and conservation programs.

In October 2007, a coalition of states and environmental groups,
led by New York, and the federal government reached a settlement
with AEP over Clean Air Act violations. As a part of the settlement,
AEP is required to pay the eight states a total of $24 million
over the next five years to fund energy efficiency and air pollution
reduction projects. The states have agreed to allocate the funds
in the following manner: Connecticut ($1.8 million), Maryland ($1.2m),
Massachusetts ($3.1m), New Hampshire ($1.2m), New Jersey ($4.2m),
New York ($9.5m), Rhode Island ($1.2m), and Vermont ($1.8m).

“Today’s settlement demonstrates the states ability
hold power companies accountable for the damage they have done
to the environment and to our communities,” said Attorney
General Gansler. “My office will work together with the Department
of the Environment to develop targeted projects that will reduce
pollution and increase energy efficiency.”

The funding announced
today adds to the historic clean air benefits that resulted from
the settlement with AEP in October 2007. The
settlement requires the company to invest nearly $5 billion to
upgrade its “eastern fleet” of 16 power plants and
cuts over 800,000 tons of air pollution yearly, the single greatest
reduction of air pollution ever attained from a Clean Air Act enforcement
action. Air pollution emissions from these 16 power plants threaten
human health, are linked to increases in asthma attacks and lung
diseases, and are also primary contributors to acid rain, which
has severely damaged lakes, forests, and wildlife.

In addition to the funds distributed to the eight states, under
the settlement, AEP is also required to pay $15 million in civil
penalties and $36 million to fund various environmental improvement
projects, including $3 million to reduce nitrogen pollution in
the Chesapeake Bay.